« BACK  |  PRINT

RS

EDITOR OF REDSTATE

House GOP Leadership Admits It Will Not Hold The Line

By: Erick Erickson (Diary)  |  July 22nd, 2011 at 09:04 PM  | 

RESIZE: AAA

Greta Van Sustren has a quote up from Eric Cantor. Cantor and the House Republicans are blaming Saxby Chambliss, Mike Crapo, Tom Coburn, and the other members of the Gang of Six for blowing things for them.

It might actually be a blessing in disguise. Why? Because the overlooked portion of the Cantor statement makes clear to House Republicans that Leadership is abandoning Cut, Cap, and Balance for a deal.

“….Contrary to news reports, a deal was never reached with the White House and a deal was never close with the White House – especially after the President insisted on more tax revenue after the Gang of Six plan was released. America will pay its bills and meet its obligations, and in coming days we will offer a path forward that meets the President’s request for a debt limit increase, manages down the debt, and achieves serious spending cuts….”

One can readily presume that if Leadership were sticking with Cut, Cap, and Balance they’d have said they already offered up their plan and they are sticking to it.

We can conclude they are not going to hold the line.

I should note that President Obama’s behavior at his press conference today suggests he is a man who knows he does not hold the upper hand. You’d think the House GOP would, therefore, keep pushing the only plan that can pass by August 2nd — cut, cap, and balance.

Tags: ,

COMMENTS

POSTING RULES  |  LOGIN TO COMMENT  |  REGISTER TODAY
  • jmimac351

    Speaker Boehner is still talking a good game. By now, in any other GOP universe, they would have folded. It could be that Boehner is gaining more confidence as time goes by. Maybe that’s just wishfull thinking as I am very aware of what it means for the GOP if The Speaker gives in. I think (hope) over the last few days the Speaker has come to understand what it means for the country and his party.

    They are clearly at a standoff. Obama’s tone, as you noted, makes that clear. Right now I’m trusting the Speaker, and verifying his every breath.

  • RealQuiet

    CCB is the only piece of legislation out there that addresses the problem. The Dems would be guilty of sending this country into the economic crapper if we default because there was something out there that tackled the problem.

    Boehner has all the cards. I hope he realizes that.

  • rightwardmarch

    Good night entitlement cuts, good night lower spending.
    Good night smaller deficits, good night tax loopholes ending.

    Good night AAA rating? Good night rising GDP?
    Good night public good-will? Good night 2012 victory?

  • edwyrd

    just listening to boehner on rush today, he was in retreat on all fronts.
    the man has no stomach for a real fight.
    when he says “there is no deal, but i am committed to preventing a default,” what i hear him saying is, “i have no balls. even though i hold ALL the aces, i won’t ever use them.”

    sorry, but thats what i keep hearing

  • Ausonius

    This weekend and the coming week therefore are crucial: call everyone, e-mail everyone, join other websites, post YouTube/FaceBook/MySpace (?) protests. and sound the alarm.

    The alternative is to let MAObama win and run the nation so far into the ground that the future becomes tragic.

    Pheidippides, an Athenian messenger, ran c. 24 miles to Sparta to seek help against the Persians.

    And of course we have Paul Revere. :)

    A few hours hoping that this protest goes “viral” and shocks the leadership is minor in comparison.

  • http://www.tooncesthecat.wordpress.com tooncesthecat

    When he said the stock market may tank on Monday?

    I think he’s secretly pulling for default as a way to save his reelection. (See Bill Clinton playbook). I think that why he says that he would veto a short term measure — so that the government would default. I think that’s why he moved the goal posts on Boehner to provoke him into leaving the negotiations.

    Obama believes the Republicans will be blamed and he will benefit politically from a financial meltdown. He also knows that Congress would then have to act–or at least he believes that they would have to act.

    He’s either delusionall or megalomaniacal–or both.

  • swami7774

    Obama dumped a $400B poison pill onto the table at the last minute, and Boehner told him to stick it.
    Doesn’t appear to be the action of a guy who’s about to cave.

  • dkinchi

    I was yelling at the TV during Obama’s press conference for all the lies he told, especially the blatant lie about Social Security and Veterans checks, he’s a sick puppy. But it was fun to see him pissed for a change… lol Plus, could we please get a real press corps? Those questions were some of the biggest softballs I’ve ever seen!

    I was disappointed by Boehners presser as well.. Like everyone else, I wanted him to come to the cameras with his backbone fully in place. Rip the President, point out repeatedly that a real bill has been passed, and that’s all that is on the table, period… Point out loudly that the house originates these bills, and they have done that. Say if he wants this country to default because he’s being stubborn about not getting any tax increases, that’s on him and the dems….

    All that being said, I’m happy so far.. ;)

  • http://www.tooncesthecat.wordpress.com tooncesthecat

    Will someone please ask “What happened to the $3 in cuts for each $1 in revenue?” I think the President said $1 trillion in cuts to discretionary spending and $1.2 trillion in tax increases. Is there a new math that I missed?

  • snowshooze

    I knew it was coming.
    If the Republicans, gutless as they are… blow it this time, and it would appear they are on the express-way to do so….
    It may be curtains.
    Our last remaining chance would be that the tea-partiers finish gutting congress. But it may be too late.

  • dkinchi

    Like someone said earlier today, “He’s in way over his head” No-one has ever said no to him before, you can tell, he was freaking out at his presser.
    He’s an egomaniac…. and a pathological liar….

  • hibr

    Erick: Why do you think its a good thing if the Leadership doesn’t push for CCB anymore? Am I reading this wrong?

  • Praying

    Become the Stupid Party? Reading this just makes the blood shoot out of my eyes! How can a group of men be so completely gutless, clueless, and out of touch? The Stupid party is shooting themselves in the foot. Would Nancy Pelosi have capitulated and turned to run, tail between her legs, so quickly? Heck no! The administration knows all they have to do is threaten and push back the teeny tiniest bit, and the stupid party will fall to the ground, quaking in fear. Don’t they realize that the American people are sick to death of these effeminate morons – we want someone who is bold, brave, who will stand on principle. Popular? Hell, who cares about popularity, and besides, they’d be a lot more popular right now if they’d simply HOLD THE LINE! Capital gains increases? Really? Great… there goes my plan for sending my kids to college. I get to give the gov’t about twice as much for the privilege of using MY money to educate my children. Way to kill the economy, guys. Bunch of socialists! I plan to email, call, and do anything in my power to get to these guys over the weekend. This is unconscionable.

  • GopTiger

    I read the tea leaves this way.

    1. Boehner and Cantor cut a deal with Obama yesterday.The deal had substantial spending cuts and a promise to appoint a commission to “examine” ways to close loopholes in the future. Cuts now-possible revenue increases in the future. In my opinion, this would have been a win for the GOP.

    2. Reid and the Democrats heard about the outline of the deal and realized there were no signficant tax increases (the core Democratic economic policy). They had a two-hour hissy fit with Obama last evening at the White House and demanded there be some immediate “revenue” increases.

    3. Obama, to mollify his base, demanded some immediate tax increases today as a way of allowing Reid and Company to save face. As Boehner stated, it was Obama who changed the terms of the deal.

    4. Boehner told Obama to stuff it. If Reid is the tail that wags Obama’s dog, Boehner figured he might as well negotiate directly with the tail.

    5. Obama( realizing he was about to lose control of the process) called a press conference this evening to get ahead of the spin cycle and reassert his dominance, his “essential man” schtick-thus all the talk about” summoning” the Congressional leadership tomorrow. Of course, Obama fails to realize these almost-daily press coference leave him looking petty and defensive.These press briefings are actually diminishing what remaining stature he has with the American public in general and independents specifically (see today’s Gallup poll). But hey-Obama’s a one-trick pony. Making speeches is all he’s got.

    6. Boehner realized he had to go on tv and respond but had nothing new to add, except to point out it was Obama bowing to his base (not the other way around).

  • carolina

    Maybe the good news is that BO does look worse with every press conference.
    God works in mysterious ways…….

  • avgjo

    I must admit that Boehner said and did (publicly) all the right things today. Still, I don’t trust the man.

  • Spiral

    Here’s the deal.

    In life, when your expectations are too high, disappointment always follows.

    For example, if I expect that the Indianapolis Colts will win the Super Bowl every year, it’s very likely that I will end up disappointed. I might even end up calling Peyton Manning a bum for not delivering what I expected from him.

    But, if my expectations are more realistic, if my expectations are that the Indianapolis Colts will make the playoffs in 4 out of the next 6 years and win the Super Bowl once, I will be satisfied with the results.

    The 2010 elections were a good result for conservatives. But the 2010 elections were, by themselves, insuffient to turn the country around. What is needed is a follow up election result in 2012, whereby the GOP boots Obama out of office and Reid out of the Majority in the Senate.

    To focus on that is more productive than to focus on whether the GOP voted to raise the debt ceiling or not or whether the GOP successfully persuaded Democrats to cut spending.

  • alreadyexists

    John Boehner may just now be realizing that he has been trying to negotiate with an emotional adolescent instead of a mature adult. Based upon the behaviors we’ve seen from the President during the past few days, an impending economic collapse may not be the most serious problem facing this country at the present. I am not trying to be flippant or insincere when I say that Obama may finally be cracking up under the strain of the presidency and all the peripheral scandals surrounding his administration. We’ve seen this before with Nixon at Watergate and Clinton at Monicagate. If Boehher stands tall, he could become the hero of our time.

  • tippycanoe

    There was a distinct momentum shift with the passage of CCB. We need to stop and analyze what just happened. Boehner walked out on the president who goes on to pitch a fit and Boehner says some pretty strong stuff. The conservative core in the House and Senate are changing the game some. What gets me is not talking about what CCB could do for the country and Reid’s comments about it being the worst piece of legislation in the history of our country. Disgusting.

  • hibr

    Should definitely be taxed the same as my wages. I don’t understand why they’re treated separately.

  • staunch_woman

    I think Mr. Boehner is a very weak character. We need someone like Zach Wamp (TN-3) to lead the House. He’d be a big hit with the public.

  • JSobieski

    Capital gains result from investments (money that has already been taxed as income), not labor.

    If I work an hour for an employer, I am guaranteed some type of wage.

    If I invest money, I am guaranteed nothing. I risk losing all of it.

    Do you want people to put money at risk?

    Or, if you want to be less philosophical about…money moves across borders faster than people. Do you want people to put money at risk in the US? Most countries in the world tax capital gains differently, and by differently I mean at a lower rate than the highest income tax rate.

    So the captial gains should definitely not be taxed the same as wages unless wages are taxed a low rate.

  • http://www.sheetanchor.org Sheet Anchor

    Sarah Palin just posted on Facebook:

    Lame Duck President

    by Sarah Palin on Friday, July 22, 2011 at 10:11pm

    After listening to the President?s press conference today, let?s keep in mind the following:

    This is the same president who proposed an absurdly irresponsible budget that would increase our debt by trillions of dollars, and whose party failed to even put forward a budget in over 800 days! This is the same president who is pushing our country to the brink because of his reckless spending on things like the nearly trillion dollar ?stimulus? boondoggle. This is the same president who ignored his own debt commission?s recommendations and demonized the voices of fiscal sanity who proposed responsible plans to reform our entitlement programs and rein in our dangerous debt trajectory. This is the same president who wanted to push through an increase in the debt ceiling that didn?t include any cuts in government spending! This is the same president who wants to slam Americans with tax hikes to cover his reckless spending, but has threatened to veto a bill proposing a balanced budget amendment. This is the same president who hasn?t put forward a responsible plan himself, but has rejected reasonable proposals that would tackle our debt. This is the same president who still refuses to understand that the American electorate rejected his big government agenda last November. As I said in Madison, Wisconsin, at the Tax Day Tea Party rally, ?We don?t want it. We can?t afford it. And we are unwilling to pay for it.?

    Now the President is outraged because the GOP House leadership called his bluff and ended discussions with him because they deemed him an obstruction to any real solution to the debt crisis.

    He has been deemed a lame duck president. And he is angry now because he is being treated as such.

    His foreign policy strategy has been described as ?leading from behind.? Well, that?s his domestic policy strategy as well. Why should he be surprised that he?s been left behind in the negotiations when he?s been leading from behind on this debt crisis?

    Thank you, GOP House leaders. Please don?t get wobbly on us now.

    2012 can?t come soon enough.

    - Sarah Palin

    Governor Palin always on the offensive in the political debate. She strikes, and strikes hard.

  • gekster

    Of course some detractors will say she is just shooting off at the mouth.
    I see it as speaking truth to power..
    But of course, the haters will see this as, well… never mind.
    we know what they will say.

  • rightwingmom52

    Like Herman Cain says, “It is not a calamity to die with dreams unfulfilled but it is a calamity to have no dreams.” I’m dreaming big.

  • lineholder

    will someone spell it out plain and simply what will happen if Obama just decides to raise the debt limit on his own? It sure sounds like he’s trying to set up the premise and present the kind of rhetoric to the American people that might justify his doing this. Can’t help but wonder if he and the Dems are stalling for this purpose.

  • gekster

    Ain’t seen you around.
    Post more often. ;)

  • gekster

    Raising the debt limit would be a spending bill, and it has to generate in the House.
    It would be unconstitutional, and would not be carried by law.

  • http://www.theprecinctproject.wordpress.com ColdWarrior

    Thank you.

    ColdWarrior

  • averagevoterdotcom

    Can you be as articulate and iviserating?

  • lineholder

    First, former Prez Clinton came out last week that Obama could do this (although why they would listen to the man who told them that they would win the elections last November if they passed O-care is beyond me.)

    Admin staff have mentioned it a few times. That CNN poll let it be known that people would be against doing it without efforts to cut spending, but it would be consistent with the character of this admin to have an attitude of “so what if it isn’t legal…so what if it isn’t what the people want…we’re doing it anyway”.

    Then Obama has his “town hall” meeting, pleading a sympathy case about how much easier this would be if he did it on his on.

    And Dems aren’t really making an effort to present anything solid.

    They’re just too smug about it. Something about the situation stinks.

  • acat

    She is amazingly talented at this. “Death Panels”, “Drill here, drill now”, and now “Lame duck President”. It’s uncanny.

    I repeat what I’ve said before. Sarah Palin has a remarkable ear and mind for finding the major point in any political blather and pinning it to the wall.

    Mew

  • acat

    simply by ordering Turbo Tax Timmy to continue borrowing (issuing bonds) beyond the limit.

    That throws the matter over to the Supremes, but .. more important for Obama .. it runs the clock.

    Mew

  • http://jakespeaks.wordpress.com/ Jake W

    Dear Colleague,

    Our economy is not creating enough jobs, and the policies coming out of Washington are a big reason why. Because of Washington, we have a tax code that is stifling job creation. Because of Washington, we have a debt crisis that is sowing uncertainty and sapping the confidence of small businesses. Because of Washington, our children are financing a government spending binge that is jeopardizing their future.

    Since the moment I became Speaker, I?ve urged President Obama to lock arms with me and seize this moment to do something significant to address these challenges. I?ve urged him to partner with congressional Republicans to do something dramatic to change the fiscal trajectory of our country. . .something that will boost confidence in our economy, renew a measure of faith in our institutions of government, and help small businesses get back to creating jobs.

    The House this week passed such a plan. . .the Cut, Cap & Balance Act, which passed the House with bipartisan support.

    Along with Majority Leader Cantor, I have also engaged the president in a dialogue in recent days. The purpose of this dialogue was to see if we could identify a path forward that would implement the principles of Cut, Cap, & Balance in a manner that could secure bipartisan support and be signed into law.

    During these discussions ? as in my earlier discussions ? it became evident that the White House is simply not serious about ending the spending binge that is destroying jobs and endangering our children?s future.

    A deal was never reached, and was never really close.

    In the end, we couldn?t connect. Not because of different personalities, but because of different visions for our country.

    The president is emphatic that taxes have to be raised. As a former small businessman, I know tax increases destroy jobs.

    The president is adamant that we cannot make fundamental changes to our entitlement programs. As the father of two daughters, I know these programs won?t be there for their generation unless significant action is taken now.

    For these reasons, I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward.

    The Democratic leaders of the House and Senate have not been participants in the conversations I and Leader Cantor have had with the White House; nor have the Republican leaders of the Senate. But I believe there is a shared commitment on both sides of the aisle to producing legislation that will serve the best interests of our country in the days ahead ? legislation that reflects the will of the American people, consistent with the principles of the Cut, Cap, & Balance Act that passed the House with bipartisan support this week.

    I wanted to alert you to these developments as soon as possible. Further information will be coming as soon as it is available. It is an honor to serve with you. Together, we will do everything in our power to end the spending binge in Washington and help our economy get back to creating jobs.

    Sincerely,

    John Boehner

    Source: http://www.nationalreview.com/corner/272574/boehner-ends-debt-talks-white-house-andrew-stiles

    ————–

    I’m not ready to throw in the towel on Boehner yet, but I wouldn’t describe myself as having complete confidence in him either.As always, we should keep up the pressure on him, but unlike Erick, I don’t thinkl he’s colluding with the others to kill CCB.

    He said a lot of the right things in his letter. I think we ought to hold him to this.

  • http://www.ipsnational.com Craig Whitelock

    I’ve argued for years that Obama is looking for a reason to create a Constitutional crisis so that he can consolidate his power even more.

    I do not believe this is now his opportunity to do so. An overwhelming number of Americans would tap dance on Congress to Impeach him for such a move.

    The 14th Amendment, Section 4, clearly does not give him this power. If we default he’ll have to make due with the revenue that is generated each month.

  • http://travismonitor.blogspot.com Freedoms Truth

    However, what sticks in my craw is the $800 billion revenue number that Boehner supposedly agreed to.

    It SHOULD be $0!

    The ONLY deal we should have is a simple ‘cut spending by X to raise debt ceiling by X’ anything else is a rube goldberg mess.

    Memo to Boehner: HOLD THE LINE. NO TAX HIKES!

  • acat

    While this may not be the crisis he *wants*, it’s the one he *has*….

    He’s been setting the stage for a “They won’t let me do my job” charge, and .. just *what* can Congress do about it, and *how long* will it take to do it?

    Not that we’ll find out since Cantor seems to be folding like a cheap suit, but … seriously, could the House acting alone pull the plug?

    Mew

  • http://travismonitor.blogspot.com Freedoms Truth

    ACTION speaks louder than words.

    The GOP has a plan. The Dems do not.

    The GOP is willing to do the right thing on the debt issues. The Dems are not.

    The GOP will raise the debt ceiling under certain conditions. The Dems keep shifting their demands.

    The GOP plan is what most voters WANT.

    If only the GOP leadership would be firmer in holding to the cut, cap and balance position and NOT pre-negotiate down to nothing, we would be in a better position.

  • lineholder

    what options would Repubs have if this does happen?

    I’m just trying to think in terms of “plan for the worst while hoping for the best”.

  • acat

    but the problem is the fear, uncertainty, and doubt are going to seriously panic the bond markets in the meantime, and that’s going to wrack everyone’s 401k, 403b, and IRA statements… since that’s where money went to be “safe”…

    The best play for the GOP may be the Krauthammer deal. Pass a short-term (5 month) extension, shout from the rooftops that they’ve given Obama what he wanted and they’ve given Obama time to come back with a plan, and then *leave town* and sell CCB to the people.

    The worst play for the GOP is to fall for the “gang of six” proposal since it’s *not* an actual proposal, it’s more of a theater prop that sorta looks like a proposal if you squint a little…

    The second worse play is the McConnell plan. It has the benefit of being an actual proposal, albeit one that underplays our hand quite a bit. I think, some days, that McConnell is trying to play bridge while Obama is playing poker…

    Mew

  • averagevoterdotcom

    if things go to hell – however unlikely it may seem now – no sniper will take or feel responsible, but will blame Boehner for screwing things up and pushing pyscho Obama too far.

    patience, Gents, patience.

    2012 is the real next step in this war.

  • lineholder

    but I’ve read plenty from people who do, and a lot of those arguments were very valid. But one of the things that Obama is most adamant about is that the amount has to be enough to get him through to 2013. He mentioned that in his town hall meeting today. That’s why he keeps going after that $1.2 trillion minimum. Even in this deal that supposedly was made with Boehner, it was originally $800 billion, which wasn’t enough, so Obama pushed it for another $400 billion. It’s purely political and nothing more, which we’ll never hear the MSM speak the truth about that point.

    Agree with you wholeheartedly about the Go6 plan and the McConnell plan.

  • Wayne

    in Washington as they have indicated they do, then our representatives know what’s at steak.

    2012 is only a heartbeat away.

    We sit in homes, apartments, condominiums, and businesses, individuals and organized groups. Watching. Waiting. Learning. We are not the ignorant masses they mistakenly thought we were.

  • bk

    I think there is a definite possibility he raises it on his own. He’ll say it’s a national security issue that the GOP is playing politics with, and being the great leader and decision-maker that he is it was time to end this.

    None of that is true of course, but given that McConnell’s own plan said Obama didn’t need Congressional approval to raise the debt limit, how can the GOP argue that he suddenly does need it?

    Obama wants a deal with tax increases to carry through the next election because he doesn’t want Democrats having to vote for tax increases during an election year.

  • bk

    1. Ryan budget: Passed the House; Dem Senate did nothing
    2. CCB: Passed the House; Dem Senate did nothing
    3. Obama “budget”: Failed 97-0 in the Senate
    4. Obama’s current plan: Blank sheet of paper
    5. Democrats’ current plan: Blank piece of paper

  • audax

    nt

  • audax

    Congress needs to stay and fight. Fight Eberything proposed by Obama and the Democrats. NO RECESS appointments for Obama! No Vacation for this Congress until January 2013!

  • audax

    nt.

  • bk

    1. Come up with a tax plan that – all else being equal – is revenue neutral. Cut rates and cut deductions. The closer to a 2- or 3- tier flat tax the better.

    2. Under an assumption that the overall deal would spur economic growth, tax revenue would grow naturally as more people get jobs, people spend more, etc.

    It seems like a no-brainer to me – bring in more revenue the right way instead of the old-fashioned way of further soaking one small group.

    This seems logical, but of course we’re dealing with Democrats who equate “tax cuts” to “increased spending we can’t afford” and “increased spending” to “investments that don’t really count as spending”. The only “tax cut” acceptable to Democrats is increasing the EITC, which the rest of us call “more welfare”.

  • PatriotForLiberty

    Explains it clearly and excellently. Bookmarking it for the next time someone asks. Thanks.

  • anjinconsulting

    Unfortunately, the details are being negotiated in some room where the public cannot listen or see the negotiations. How insane is that?

    I concur with your assessment though; trust but authenticate. It will be very ugly for the republicans if they cave, but even more so for the economy if the more salacious details being reported actually come to fruition.

  • jimmyneutron

    worried me all along.

    I am concerned that our side comes up with a ‘magical, wonderful, happy’ deal with Obama that ‘enhances’ revenue a significant amount by eliminating deductions and raising my taxes without simplifying the tax code (and you can bet your rear that Obama is going to keep in things to help him and his buddies and probably even add more goodies if possible).

    This wonderful plan will also contain impressive sounding words about cutting spending and eliminating waste and all of those things that make our hearts go pitter patter.

    Of course, this grand plan will also raise the debt ceiling by several Trillion dollars (Yes indeed – that is Trillion with a capital T) which will effectively allow our dear leader to sweep this whole issue under the rug until after he gets re-elected and will show what a great statesman he is and that those nasty conservatives were lying to all of the poor citizens out there who just can’t live without uncle Sam’s spoon in their mouth and that there really is no reason to fear that the gravy train is going to end anytime soon.

    I myself prefer the approach where we just keep fighting this out, day in and day out, all the way to the election. Keep reminding the American people that we are indeed the brokest nation in history and that there just aren’t enough rich people and that there isn’t enough money anywhere to pay for all of the goodies that so many people seem to want.

    The fed’s can’t keep handing millions and billions to large corporate farm companies, they can’t keep paying for cell phones and internet services and – what is really going to shock many – the big three entitlement programs are going to have to be fundamentally reformed because they were never designed in such a way that they would work for all that long in the first place.

    Then, if the majority of our country decide that they want to ignore all signs of reality and continue to party like there is no tomorrow, at least they will do so with one group of people telling them the truth.

  • ashland_avenue

    Ladies and gentlemen, Eric Cantor and I have met this morning with leaders of the other party and with the nation’s President about their request that we increase the country’s debt limit.

    Under President Barack Obama, we have been spending record levels of your money. And we have been doing so despite the failure of revenues to meet those expenditures. Every day your government is spending more than $4 billion that it does not have. It has been spending that money on a variety of things.

    This year we are on track to spend more than $3.6 trillion. That is 3,600 billions of your dollars.

    To fund those expenses, we should have revenues of about $2.2. trillion.

    Those revenues come from such things as personal and corporate taxes, Social Security and Medicare taxes, duties and fees.

    You may have heard the President maintain that he will not accept a plan for narrowing the deficit unless it includes tax revenues.
    Last year, about $900 billion of your government’s revenues came from personal income tax collections.

    Some in the other party want to raise the rates at which our citizens pay their incomes to taxes. Our party has refused to do that. The reason in part is because history shows that when tax rates go up, citizens do anything they can to legally avoid paying them, including working less and working for Johny Cash.

    Even if we raise rates, we may not raise money. Which, as our beloved Yogi Berra has said, is almost as good as cash.

    Bu there are other reasons not to raise taxes now. We are in a pretty severe recession now. Do any of you doubt that if more money is taken from your check, you will spend less on food, clothing or whatever?

    Only about $900 billion of our revenues comes from individual income tax payments. Even if we were to double that, there would still be a terrible deficit to fix. Our point is that the attempt to take more of your income will leave less money in your pockets and thus crimp an already weak level of demand.

    In 2010, you gave our party a majority in The House and with it instructions for us to cut the excessive spending. We have taken your mandate to heart and are working on it. I will respond further as these talks progress. God bless you, and God bless America.

  • swi2522

    for causing the economic recovery to fail even though there was no recovery and all his policies only hurt america

    i still think he wants to collapse the economy and the dollar to remake america in his socialist imagine

  • bk

    Here are a couple to start things off:
    - How much income tax would GE have paid last year under this plan vs paying $0 on $5B in profits?
    - How much is the total reduction in ethanol subsidies under this plan?
    - What is one government program or department that would be shuttered under this plan?

  • Spiral

    You can denounce medicrity all you want. But mediocrity is an accurate description of our electorate.

    Politicians must get the votes of this electorate. You want conservative governance for an electorate that demands all kinds of free-bees? It’s not going to be easy and it will not be the result of a mid-term election like 2010.

    At a minimum, you will have to have 2 back to back elections where conservatives win. Perhaps 2010 and 2012 will be those elections.

    Maybe. But first conservatives must step out of the way and stop trying to pretend that they control the government. They don’t.

    Wait. Until. 2012.

  • Death_of_the_Donkey

    Tax rates should not be preferential for capital gains (or any other kind of income). You risk your money in investments because you believe their is a greater return on that money (holding all else equal), the government shouldn’t be involved in influencing your decision of how to utilize your capital by picking a winner (capital gains) over other activity. And, as we saw under Reagan (Tax Reform Act of 1986), broadening the base (ie lowering rates) and setting capital gains equal to income tax rates did not have a deleterious effect on the stock market (the S7P more than tripled between the passage of that act and the passage of the preferential cap gains rates in 1997).

    Your question about risk goes directly to one evaluating the investment opportunity and its perceived potential return and should not have an additional government incentive involved that skews that investment decision in one direction. Plus, government also already protects you by allowing you to deduct losses and offset gains as well.

    Finally, this argument for cap gains would appear to presage that at the very least you would agree that preferential treatment of dividend income is wrong, since your risk in that asset is already covered through the capital gains tax treatments.

  • ashland_avenue

    Nt

  • kajun65

    BO & JBO are trying to appeal to thier base. The deal’s already struck and we will not like it one bit. Bank on it!

  • bigredone

    Capital gains and dividends result from savings and investment. As such they have already been taxed and should never, ever be taxed again.

    Neither rents not savings accounts should be taxed.

    The only way to get people to save is to let them save freely without taxation taking away the incentive.

    Flat tax of 10% with ZERO deductions will solve all of our problems. File on a post card delivered by UPS or FedEx, and send a check on April 15. No withholding. Let people see just exactly comes out of the paycheck.

    We’ve tried Marx’s plan; let us try a Flat Tax.

  • silentcal2012

    Its really hard to say the leadership abandoned something that has been voted down. There is also nothing that says that dont intent to resurrect it CCB in the future or after 2012. It hasnt been abandoned, it has been temporarily defeated, which every logical person knew would happen.

  • JSobieski

    at a higher rate than our competitors, we will lose out.

    Why would someone from Europe or Asian invest in a US company if both our corporate taxes and capital gains taxes are higher than the rest of the developed world?

    Lowering capitals gains taxes is not a skewed incentive any more than charging capital gains taxes at all is a skewed incentive.

    A person chooses where they invest. It is easier to move someone’s investments outside the US than it is to move one’s residence outside the US.

    As you know, deducting losses is capped. I am still deducting my losses from 1999.

    I am not being philosophical about this. To be its about pure competitiveness. We do a lot of things in this country to chase away capital.